Michael McGrath (Cork South Central, Fianna Fail)
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158. To ask the Minister for Environment, Community and Local Government the number of mortgage to rent applications outstanding; his plans to reform the scheme; and if he will make a statement on the matter. [45547/14]

Alan Kelly (Tipperary North, Labour)
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There are currently two mortgage-to-rent schemes in operation through my Department. A scheme exists whereby a local authority (LA) can acquire ownership of properties with unsustainable local authority mortgages, thus enabling the household to remain in their home as a social housing tenant (LA- mortgage-to-rent). The other scheme provides for an Approved Housing Body (AHB) to acquire ownership of a property with an unsustainable private mortgage, which also enables the household to remain in their home as a social housing tenant (AHB-mortgage-to-rent). Both schemes are designed to assist families with income difficulties whose mortgages are now unsustainable, and where there is little or no prospect of a significant change in circumstances in the foreseeable future.

On foot of the recommendations of the Keane Report on mortgage arrears the Government launched the AHB-mortgage-to-rent scheme on a pilot basis in February 2012 and extended it nationally in June 2012. The scheme is currently in operation and continues to accept applications from lending institutions.

A total of 2,558 cases have been submitted to the end of October. 1,034 were ineligible or terminated during the process with a further 46 units not progressing as agreement on the sale could not be reached. 50 transactions have been completed under the scheme. 1,044 are currently with the lenders who are seeking the consent of borrowers to share information and for the carrying out of an independent valuation, and the remaining 384 are actively being progressed.

Separately, my Department has funded 36 cases under the Local Authority scheme to date. The Department currently has 40 LA mortgage to rent applications on hand and expects to receive a small number of additional applications by the end of 2014.

In an effort to increase the numbers delivered under the AHB scheme a new protocol between all parties in the process was agreed and came into operation in June 2014. The protocol includes such measures as the provision of a single independent valuation for the purpose of agreeing the purchase price. The valuation and condition surveys will now be carried out earlier in the process to give more certainty to all parties in the process, including the borrower. The new protocol is endeavouring to ensure that as much certainty is being provided as early as possible in the process to minimise uncertainty and late withdrawals from the scheme.

Also in June 2014, my Department issued revised guidelines to local authorities for dealing with mortgage arrears within their sector under the LA scheme. There are currently no plans to amend the LA scheme, which is at an early stage of operation, but its workings will be kept under constant review. I am confident that delivery will accelerate as a result of these changes.